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Cohesion policy funds in coal regions

Platform for Coal Regions in Transition#CoalRegionsEU

Regional Policy

Cohesion policy 2014-2020

Mathieu FichterPolicy officer Energy

Competence Centre 'Smart and Sustainable Growth' DG Regional and Urban Policy

Regional Policy

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European Structural and Investment Funds (ESIF):- European Regional Development Fund (ERDF)- Cohesion Fund (CF)- European Social Fund (ESF)- European Agricultural Fund for Rural

Development (EAFRD)- European Maritime and Fisheries Fund (EMFF)

Cohesion policy (ERDF, CF, ESF): €352bnover 2014-2020 concentrated in less developed regions, aiming to:- Reduce disparities between Europe's regions

strengthening economic, social and territorial cohesion

- Contribute to the Europe 2020 Strategy for smart, sustainable and inclusive growth

Shared management

ESIF 2014-2020

ERDF and ESF eligibility for 2014-2020 period:

Regional Policy

1. Research & innovation2. Information and communication technologies (ICT)3. Competitiveness of Small and Medium-sized Enterprises

4. Shift towards a low-carbon economy5. Climate change adaptation & risk management and prevention6. Environmental protection & resource efficiency7. Sustainable transport & removing bottlenecks in key network

infrastructures

8. Employment & support for labour mobility9. Social inclusion & combating poverty10. Education, skills & lifelong learning11. Institutional capacity building & efficient public administration

Smart Growth

Sustainable Growth

Inclusive Growth

Translated into Fund-specific investment priorities

Thematic Objectives & concentration

Regional Policy

Planned allocations from the European Regional Development Fund (ERDF) and the Cohesion Fund (CF), 06/2016.

Funding leading to benefits for people, regions and businesses

Regional Policy

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Energy efficiency: ERDF+CFfor 2014-2020, in billion EUR

Total planned allocations per Member State from the ERDF and the CF as of January 2017

Regional Policy

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List of Programmes and Managing authorities:http://ec.europa.eu/regional_policy/en/atlas/programmes/http://ec.europa.eu/regional_policy/en/atlas/managing-authorities/

Open data platform:https://cohesiondata.ec.europa.euhttp://ec.europa.eu/regional_policy/en/policy/evaluations/data-for-research/

Project examples:https://ec.europa.eu/budget/euprojects/http://ec.europa.eu/regional_policy/EN/projects/http://ec.europa.eu/esf/main.jsp?catId=46

Impacts of EU programmesin the coal regions in Czech RepublicBrussels, 17th October 2019

Coal mining areas in the Czech Republic covered by the RE:START strategy

COAL MINING SITES AND PLACESOF INTEREST FOR THE STRATEGY

NUTS II:NORTHWEST

NUTS II:MORAVIAN-SILESIAN

Usti and Karlovy Vary region at the northwest part of the country and Moravia-Silesia region at the northeast part of the country.

Change of economic structure, faster economic growth and cease of regions lagging

Identity – enforcing solidarity and self-confidence of inhabitantsImage – improved perception of regions by the neighbours: visits, investors, talents

Pillar Infrastructure and public administrationBetter quality infrastructure for business, attracting investments and addressing social exclusion.

Better quality services of public administration for businesses andcitizens.

PillarBusiness and

innovationGrowing businesscapable to cope with changes in

global markets.

PillarDirect

investmentsMore direct investments with higher added value.

PillarResearch and development

Research and development with higher

benefits for economy..

PillarHuman

resourcesCompetent peoplefor industry, services and

public authorities.

PillarSocial

stabilizationRemove barriers of

development related with social instability.

Pillar EnvironmentBetter quality of environment. Revitalized and regenerated area for better business and healthier life of inhabitants.

Pillar ImplementationMultilevel cooperation of public authorities; use of existing programmes and funds, complemented in case of need with new ones;

Special management of implementation and responsibility for results.

PILLARS AND TARGETS

Strategic Framework of RE:START Strategy

THREE ACTION PLANS approved by the government are already in the implementation process

Total number of measures Allocation Implementation

94 approx. EUR 2,68 billion 2017 - 2030

Number of finalized measures 26

Funding dedicated to implementation of restructuring projects till the end of September 2019:

RegionNUTS II

Moravian-SilesianNUTS II

Northwest

EUR 105 386 448 85 123 907

total EUR 190 510 355

Action plans of RE:START Strategy

Following the Czech Republic's membership in CCIRIT Platform, the use of REALLOCATIONS AT THE LEVEL OF CZECH OPERATIONAL PROGRAMS in favor of coal regions in transition was approved by EC in the amount of:

320 M EUR40 M EUR for Operational ProgrammeEnvironment

200 M EUR for Integrated Regional Operational Programme

80 M EUR for Operational ProgrammeEnterprise and Innovation for Competitiveness

Reallocation of EU funding in favor of Czech coal

regions in transition

SUPPORTED AREAS

Healthcarelink to the Pillar

„Social stabilization“ of the RE:START

Strategy

31,6 M EUR

Low emission and zero emission public

transport serviceslink to the Pillars

„Environment“ and „Infrastructure and

public administration“ of the RE:START Strategy

78 M EUR

Infrastructure for schools

link to the Pillar „Human resources“ of the

RE:START Strategy

12,4 M EUR

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Development of low emission and zero emission public transport services in the coal regions of Czech Republic

Main goals – support purchasing of:

▪ low-emission road vehicles for transport services using alternative fuel of CNG or LNG and complying with EURO 6 standard.

▪ emission-free road transport vehicles services using alternative fuel electricity or hydrogen.

▪ emission - free urban transport vehicles (trams) or trolleybuses).

Support for reaching the goals of the RE:START Strategy Pillar „Environment“ and „Infrastructure and public administration“

Regenerate developing, deprived or peripheral areas in settlements with a high population concentration

Interconnect areas where there is a significant barrier to development and growth

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

▪ results to date - 2 granted projects, EU funding = 6 M EUR▪ a call for project opened in June and closed in October is now

in the process of evaluation – 35 project proposal submitted – required EU funding = 176 M EUR

(4,4 times higher than the call allocation)▪ expected allocation of a new call to be opened by the end of

2019: 32 M EUR

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Development of low emission and zero emission public transport services in the coal regions of Czech Republic

EXAMPLES OF GRANTED PROJECTS

Ústí RegionTransport company of Most and Litvínov, a.s.▪ acquisition of low-floor emission-free high-capacity trams

for connecting the cities of Most and Litvínov (15 km).▪ EU grant support: 2,72 M EUR

Karlovy Vary RegionCity Transport of Mariánské Lázně s.r.o.▪ acquisition of emission-free trolleybuses for the

development and improvement of transport services.▪ EU grant support: 3,28 M EUR

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Development and increasing quality of primary education in the coal regions of Czech Republic

Main goals:

▪ Constructions, building modifications and acquisition of professional classroom equipment to improve the quality of education related to the future career with emphasis on key competencies.

▪ Reconstruction of existing infrastructure related to building barrier-free schools.

Support for reaching the goals of the RE:START Strategy Pillar „Human resources“

More people better prepared for work

More people better motivated to work

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Development and increasing quality of primary education in the coal regions of Czech Republic

Results to date:

▪ 4 granted projects

▪ EU funding = 1,77 M EUR

Expected allocation of a new call to be opened by the end of 2019:

10,6 M EUR

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

EXAMPLES OF GRANTED PROJECTS

Karlovy Vary RegionElementary school in Rotava▪ reconstruction of the student school kitchen with adjacent classroom,

barrier-free access to school and barrier-free access in corridors and development of internal e-connectivity.

▪ EU grant support: 250 K EUR

Ústí RegionCity of Jirkov▪ acquisition of equipment for training in communication in foreign

languages, work with digital technologies and equipment for natural sciences in four elementary schools established by the City of Jirkov.

▪ EU grant support: 1,12 M EUR

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Healthcare in the coal regions of Czech Republic

Main goals:

▪ Acquisition and modernization of instrumentation, technologies and other equipment used to provide health services in supported fields,

▪ Construction works necessary for acquisition, modernization, location, installation and commissioning of instrumentation, medical devices, technologies and other equipment, which serve for the provision of health services in supported disciplines and methods of follow-up care.

Support for reaching the goals of the RE:START Strategy Pillar „Social stabilization“

Increasing security and feeling of security in regions

Increasing the attractiveness of life in regions and ensuring quality civic amenities and services in the regions

Reallocation of EU funding on the level of Integrated Regional

Operational Programme

Healthcare in the coal regions of Czech Republic

Results to date▪ 14 granted projects▪ EU funding = 31,6 M EUR

EXAMPLES OF GRANTED PROJECTS

Moravian-Silesian RegionVítkovice Hospital▪ instrumentation renewal incl.

magnetic resonance imaging and angiographic instruments.

▪ EU grant support: 6.4 M EUR

Ústí RegionKrajská zdravotní, a.s. (company running hospitals across the Ústí Region) ▪ e.g. a sciagraphic set and a computer

tomography for the radio diagnostic department worth 1,28 M EUR will be purchased for the Děčín hospital; thanks to these devices, very sensitive diagnostics of a wide range of injuries and diseases can be performed.

Support and strengthening the transition processes in relation to investments into properties of small and medium size enterprises:

Main goalto facilitate the modernization of obsolete and technically inadequate buildings for SMEs to carry out supported economic activities or to replace them with new buildings for business activities in coal regions

Allocation of the call: up to 80 M EUR

call to be closed in March 16 2020

Support for reaching the goals of the RE:START Strategy Pillar „Business and innovation “

Growth of companies and their penetration into new markets, higher resistance to changes in markets.

Reallocation of EU funding on the level of Operational Programme

Enterprise and Innovation for Competitiveness

Reallocation of EU funding on the level of Operational

Programme Environment

Reducing the level of emissions in coal regions:

Main goalReduce emissions of stationary sources contributing to the exposure of the population to above-the-limit concentrations of pollutants in coal regions.

Support for reaching the goals of the RE:START Strategy Pillar „Environment“

Revitalize and regenerate areas heavily affected by mining and industrial activities.

Reallocation of EU funding on the level of Operational

Programme Environment

Results to date▪ 49 granted projects▪ EU funding = 40 M EUR

EXAMPLES OF GRANTED PROJECTS

Karlovy Vary RegionSokolovská uhelná, a.s. – TisováPowerplant▪ reduction the of NOx, SO2 and

solid pollutants emissions, ▪ EU grant support: 2,86 M EUR

Reducing the level of emissions in coal regions:

Moravian-Silesian RegionTŘINECKÉ ŽELEZÁRNY, a. s.▪ dedusting of hot transport

routes of agglomerate incl. cooling the agglomerate.,

▪ EU grant support: 9,67 M EUR

▪ EU funds play a significant role in the implementation of RE:START Strategy and reaching up its goals.

▪ For RE:START Strategy the continuous communication of the potential of reallocation and (re)programming with European Commission representatives is crucial –here we see the greatest benefit of the activities of CRIT Platform.

▪ There is a great potential for further strengthening the role of EU funds for Czech coal regions in in the EU programming period 2021 – 2027.

▪ In Czech Republic the programming of operational programmes for the EU programming period 2021 – 2027 is carried out with respect to the need to reflect the specific needs of Czech coal regions in transition.

▪ Czech Republic is also interested in the potential of Just Transition Fund

Conclusions to reallocation of EU funding and further perspective

Thank you for your attention

National Manager of RE:START StrategyMinistry of Regional Developmentof the Czech Republic

Gabriela Nekolová

gabriela.nekolova@mmr.cz

Cohesion Policy Funds in coal regions – Poland

Krzysztof Wójcik

DG REGIOUnit F3 Poland

Coal Industry in PL vs EU

Coal Industryin PL vs EU (2)

•Five out of 20 top coal mining regions in the EU are located in Poland:

Silesia,

Łódzkie (Bełchatów subregion),

Lubelskie,

Malopolskie,

Wielkopolskie (Konin subregion).

• Cohesion & transformation in PL:

long experience in supporting industrial transition;

holistic approach to the challenges of transition;

well suited to address issues related to structural change, working inpartnership with actors;

only in 2007-2013 period, ERDF supported key transition projects forover 100m EUR in biggest coal region in EU – Silesia;

Cohesion Policy support for PL regionsin coal transition

• 3 PL Regions involved: Silesia, Greater Poland, Lower Silesia;

• Project supported in 2014-2020 via reprogramming the ROPs and through OP Infrastructure & Environment & OP TA (130m EUR in Silesia);

• Projects, which cannot be supported in this period (due to financing shortages in ROP or maturity level), are being prepared for the 2021-2027 period

Cohesion Policy & Coal Regions in Transition

• Transformation is not only challenges related to the energy sector;

• National vs regional competences;

• Efficient phasing out of from the coal-based economydepends also on:

economic

industrial

technologic

social aspects

What is behind transformation proces in PL?

• ESIF already provide support for:

• Economic transformation in line with smart specialisation strategies:

support of SMEs,

business incubators,

Innovation

cooperation of industry and researchers

• Reskilling of workers traditionally linked to coal sector;

• Promotion of energy efficiency and alternative renewable energy sources;

ESIF package

• Last closed mine – 20 y. ago

• Challenges: Revitalization

Depopulation

Geological problems

Social aspects

Water shortages

Best project within CRiT:

Construction of a water production plant using post-mining water intakeand construction of a plant for the use of geothermal heat from thesewaters

Lower Silesia – unfinished tranformation

• Challenges: Konin area heavily dependent on lignite coal;

Lignite extraction and power generation activities from coal generate almost 6000 direct jobs;

Lowering of groundwater level and drought;

Lignite resources are about to be fully exploited in next decade;

Best project within CRiT:

Hydrogen Technologies (complementary project ideas)

Greater Poland on the Edge of tranformation

• Ongoing restructuration: reduction of coal mines from 70 to 27

43% of the gross value added created in the Śląskie comes from the industry sector and mining plays an important role in it

49.4% of GVA created in mining in PL;

• Challanges:Degraded areas 18%;

Strong dependence on coal around industries;

Support for companies – 66 mining entities 250 in a chain;

Social aspect: 80 000 direct jobs;

Air Quality

By 2050 the population in the Śląskie Voivodeship will decrease by 19.1%

Silesia – during tranformation

• 100m EUR to transition projects financed by ESIF;

• Deep transformation of the public space in Katowice

• The former coal mine has been revitalised and transformed in the Cultural Area

Silesia - ESIF suport in 2007-2013

• Silesian Museum - exhibition located underground to reflect the mining past of the area, with the surface area reconverted to a public park;

• International Congress Centre - A surface of 8.4 ha was revitalised;

• Concert hall of the Polish National Radio Symphony Orchestra;

• Approx. 100m EUR to transition projects

• Sources: ROP for Silesia and the national OP Infrastructure & Environment, as well as OP TA.

• Best projects within CRiT:

Development of a post-mining sites management system; (inventory of post-mining areas for investment and pro-economic purposes);

Silesia under the blue sky; (air quality technologies);

Modernisation of the Silesia Urban Park (ex-mining areas);

InfoSmog-MED; (information system on air pollution);

Regional Platform of Economic Activation;

Silesia - ESIF suport in 2014-2020 (2)

• Above-mentioned projects will be shortly followed by new initiatives (approx. 30m EUR), selected for implementation by Polish Country team:

Economic acceleration of the region’s economy development in the areas of new specialisations and innovations;

Inter-university business centre of creativity, co-working, prototyping and animating projects;

Inter Silesia - internationalization of the SME sector;

Business Accelerator / Competence Centre;

Silesia - ESIF suport in 2014-2020 (3)

Unique support

• Separate set of selection criteria (Jaspers) ;

• Non-competitive mode of project selection;

• Competitive projects selection with bonus points for contributing to coal regions initiative;

• Separate calls in OP I&E focused only on Coal Regions in Transition in RES;